HERSHEY'S MILK & MILKSHAKES - Nationwide Candy LLC
HERSHEY'S MILK & MILKSHAKES - Nationwide Candy LLC HERSHEY'S MILK & MILKSHAKES - Nationwide Candy LLC
HERSHEY’S MILK & MILKSHAKES NACS Chicago October 2011
- Page 2 and 3: Convenience Store Channel Geography
- Page 4 and 5: Hershey Brand Outperforms Nestle in
- Page 6 and 7: Hershey’s Makes Splash with New P
- Page 8 and 9: New Hershey’s Milk & Milkshake La
HERSHEY’S <strong>MILK</strong> & <strong>MILK</strong>SHAKES<br />
NACS Chicago<br />
October 2011
Convenience Store Channel<br />
Geography<br />
Product<br />
Volume Sales<br />
(Gallons)<br />
Volume Sales Chg<br />
YAgo (Gallons)<br />
Volume Share of<br />
Flavored Milk and<br />
Milkshakes<br />
Unit Sales<br />
Chg YAgo<br />
Dollar Sales<br />
Chg YAgo<br />
ACV<br />
Wtd<br />
Dist<br />
Hershey Flavored Milk & Milkshakes 58,927 5,025 5.3 26,802 29,510 28.8<br />
NORTHEAST<br />
LOL/Deans Flavored Milk & Shakes 171 171 0.0 588 942 0.3<br />
Nesquick Flavored Milk & Milkshakes 113,421 (128,303) 10.2 (519,997) (1,008,444) 80.3<br />
Private Label Flavored Milk &<br />
Milkshakes<br />
365,983 (21,525) 32.8 (26,577) 10,712 15.7<br />
Total Flavored Milk and Milkshakes 1,115,380 (172,088) 100.0 (617,917) (983,318) 80.3<br />
Hershey Flavored Milk & Milkshakes 169,911 58,718 2.6 313,165 537,335 20.8<br />
TOTAL U.S.<br />
LOL/Deans Flavored Milk & Shakes 483,895 41,470 7.4 124,363 230,269 4.6<br />
Nesquick Flavored Milk & Milkshakes 650,743 (697,483) 10.0 (2,741,320) (5,507,799) 71.2<br />
Private Label Flavored Milk &<br />
Milkshakes<br />
593,724 (50,069) 9.1 (106,540) (7,015) 3.0<br />
Total Flavored Milk and Milkshakes 6,532,823 (802,356) 100.0 (3,048,458) (4,583,920) 71.2<br />
All Scan last 23 wks ending Aug 7, 2011
The Hershey Brand Delivers Great Taste to the Convenience Store Consumer<br />
Looking for a Flavorful Indulgent Drink<br />
In a quantitative research study, Hershey outperformed Nesquik<br />
with convenience store consumers who drink flavored milk/shakes<br />
Hershey had a stronger equity around richness, thickness, chocolate, creaminess, and personal fit<br />
% of Convenience Store Flavored Milk/Shakes Consumers Who Agree<br />
Source: Proprietary Hood Research 2010
Hershey Brand Outperforms Nestle<br />
in Confection Category<br />
Hershey owns 5 of the top 10<br />
Chocolate Brands<br />
Nestle’s first brand is #23-<br />
Butterfinger<br />
Hershey Chocolate % of Dollars<br />
Sales= 29%, Nestle= 6%<br />
Hershey Chocolate % of Volume<br />
Sales= 31%, Nestle= 7%<br />
• The Hershey equity extends well beyond confections to other product lines<br />
– Ice Cream<br />
– Syrups Consumers indicate these products lend even more<br />
– Cookies/Snackscredibility to Hershey’s line of Flavored Milk/Milkshakes<br />
– Brownies<br />
Source: IRI Current 4 Weeks Ending 1.22.2011
The Hershey’s Flavored Milk/Shake Consumer Fits Well<br />
with the Convenience Class of Trade<br />
• There are two key consumer segments that shop for<br />
Hershey’s Single Serve Milk/Shakes in Convenience Stores:<br />
1. Teens and young adults<br />
• Skews more male (ages 16 – 24)<br />
• Impulse driven (purchase and consumption)<br />
• On-the-go lifestyle<br />
• Disposable income<br />
• Not calorie conscious<br />
• Loves rich flavor and indulgence<br />
• Sometimes seek a flavored milk/shake to accompany breakfast or<br />
lunch<br />
• Have an affinity to Hershey’s for chocolate equity and great taste<br />
2. Older adults<br />
• Consumption is for themselves, NOT their children<br />
• Love drinking chocolate milk and shakes – always have<br />
• Slight skew to blue collar<br />
• Have a strong affinity to Hershey’s for heritage and love of the<br />
brand<br />
Source: Proprietary Hood Research 2010
Hershey’s Makes Splash with<br />
New Package Design in 2012
New Hershey’s Milk/Shakes Label Design in 2012<br />
• Conducted extensive qualitative and quantitative research in 2011 on the single serve milk<br />
& milkshakes category (including comprehensive retail shelf/eye-tracking study)<br />
– “Grab and go” mentality exists within the single serve beverage category in C Store channel among target<br />
consumers (young males 16 – 24).<br />
• They purchase by flavor (40%) followed by brand (25%) in both the C Store and grocery channels and their<br />
purchases are impulsive<br />
• Shelf impact and clear/immediate communication are imperative in the single serve beverage category<br />
• Research identified opportunities to optimize Hershey’s Milk & Milkshakes package graphics<br />
Hood Proprietary Consumer Research conducted by Inspire Group 2011<br />
Hood Proprietary Consumer Research conducted by PRS April 2011<br />
Hood Proprietary Positioning Research conducted by AMP October 2010
New Hershey’s Milk & Milkshake Label for 2012<br />
• New Design<br />
– Yields strong overall shopper appeal and aligns with the brand’s desired positioning -<br />
appetizing, inviting, fun (statistically significant increase from 79% to 89% among young<br />
male target and from 79% to 95% among target moms).<br />
– Differentiates Hershey’s from competition at shelf<br />
– Breaks through surrounding clutter in single serve shelf set<br />
– Exceedingly personifies the personality of the package as popular, happy, classy,<br />
energetic, and adventurous, which is more in line with the brand’s desired positioning -<br />
without being too young.<br />
• Consumer research indicated that young males believe Nesquik Bunny to be too<br />
childish for them<br />
• New Hershey’s design is more appealing and more fitting to their personality, age<br />
and interests
PRODUCTS<br />
• Chocolate Lowfat Milk<br />
• Creamy Chocolate Milkshake<br />
• Cookies n’ Crème Milkshake<br />
• Strawberry Milkshake<br />
• Lowfat Milk<br />
Hershey’s Milk & Milkshakes<br />
FEATURES & BENEFITS<br />
• Hershey’s Brand<br />
• Superior Taste & Quality<br />
• Made with Real Sugar (No HFCS)<br />
• Fresh Milk with Extended Shelf Life (120<br />
days)<br />
• New Package for 2012!<br />
PACKAGING<br />
• Single Serve 12 oz. Plastic Bottles<br />
– CONSUMER RESEARCH PROVED 12 OZ IS<br />
PREFERRED SIZE<br />
DISTRIBUTION<br />
• National<br />
9